The Alabama Department of Revenue will efficiently and effectively administer the revenue laws in an equitable, courteous, and professional manner to fund governmental services for the citizens of Alabama. City occupational taxes do not apply to capital gains, however. This calculator computes federal income taxes, state income taxes, social security taxes, medicare taxes, self-employment tax, capital gains tax, and the net investment tax. This breakdown will include how much income tax you are paying, state taxes, federal taxes, and many other costs. Depending on how you measure it, Alabama's property taxes are either the lowest or second lowest in the nation. Copyright Tax Form Calculator 2013 - 2021, Federal tax tables and State Tax tables for 2021/22, There are a lot of different tax systems in the USA and this can often make it difficult to cater for all local and county taxes. To outsiders, Alabama is best known for the intense rivalry between the Tigers and the Crimson Tide. Taxes in Alabama. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax. If such low property taxes make you want to call Alabama home sweet home, check out our mortgage guide for the most important information about getting a mortgage in Alabama. Forms To view a complete listing of forms for individual income tax, please visit the forms page. The Alabama bonus tax percent calculator will tell you what your take-home pay will be for your bonus based on the supplemental percentage rate method of withholding. neuvoo™ 【 Online Salary and Tax Calculator 】 provides your income after tax if you make $55,000 in Alabama. Alabama Sales Tax on Car Purchases: Vehicles purchases are some of the largest sales commonly made in Alabama, which means that they can lead to a hefty sales tax bill. Compare your take home after tax and estimate your tax return online, great for single filers, married filing jointly, head of household and widower Residents and nonresident of following four local jurisdiction within the state of Alabama pay a flat city income tax as per rates given below in addition to the Alabama income tax and the Federal income tax. Paying Taxes On Your Self-Employment Income. How to calculate income tax in Alabama in . The state general sales tax rate of Alabama is 4%. Prior to May 2015, the purchase of playing cards in Alabama was accompanied by a 10-cent fee per deck, in addition to standard sales taxes. 2% on the first $500 of taxable income. You may search by form number, title of the form, division, tax category, and/or year. To better compare income tax burdens across counties, we used the national median household income. 3. Scroll over any county in the state to learn about taxes in that specific area. Alabama has a 4% statewide sales tax rate, but also has 284 local tax jurisdictions (including cities, towns, counties, and special districts) that collect an average local sales tax of 3.944% on top of the state tax. You can choose an alternate State Tax Calculator below: AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY. Below, we have highlighted a number of tax rates, ranks, and measures detailing Alabama’s income tax, business tax, sales tax, and property tax systems. 2% on the first $1,000 of taxable income. Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. The biggest reason why filing a 1099-MISC can catch people off guard is because of the 15.3% self-employment tax. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. neuvoo™ 【 Online Salary and Tax Calculator 】 provides your income after tax if you work in Alabama. Sources: US Census Bureau 2018 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset, Enter your financial details to calculate your taxes, Find a Savings or CD account that works for you. When Do We Update? Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. My Alabama Taxes My Alabama Taxes is currently unavailable. Most states will release updated tax forms between January and April. SmartAsset’s interactive map highlights the counties with the lowest tax burden. However, rates could be higher depending on where in Alabama you live or work, as local governments can also collect income taxes ranging from 0% to 2%. Unfortunately, we are currently unable to find savings account that fit your criteria. This tool was created by 1984 network. This is a useful section if you are looking to save money to pay your annual tax return and are using the Alabama Tax Calculator to estimate your Alabama state taxes and Federal taxes. Unlike Alabama state income taxes, municipal occupational taxes apply to gross wages (as opposed to taxable income), and are typically withheld from workers’ paychecks. For married people filing joint returns: 1. * These are the taxes owed for the 2020 - 2021 filing season. Alabama has a state income tax that ranges between 2.000% and 5.000%. Press Calculate to see your Alabama tax and take home breakdown including Federal Tax deductions, Check the box - Advanced ALS Income Tax Calculator, Confirm Number of Children you claim Tax Credits for, Select other relevant tax factors (Age related tax allowances, head of household tax allowance, tax-deferred retirement plan, cafeteria etc), Click Calculate to see your tax, medicare and take home breakdown - Federal Tax made Simple. Register My eID. Get Started. Additional taxes are then levied at the local level. Are you curious how your tax burden stacks up against others in your state? Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year. In fact, Alabama is also one of just two states that taxes all food at the full sales tax rate, without offering any form of food tax rebate or relief. In order to determine sales tax burden, we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. How 2020 Sales taxes are calculated in Alabama. How does the tax return calculator work? Alabama has the second lowest average effective property tax rate in the country, and its income tax rates range from just 2% to 5%, lower than most other states that have an income tax. Our Tax calculator is based on data from 2021 in USA However, users occasionally notify us about issues that need correction. This tax must be paid in addition to the business privilege tax. The first step towards understanding Alabama’s tax code is knowing the basics. The current tax year is 2020, with tax returns due in April 2021. 2017 Alabama Tax Tables with 2021 Federal income tax rates, medicare rate, FICA and supporting tax and withholdings calculator. For fuel taxes, we first distributed statewide vehicle miles traveled to the county level using the number of vehicles in each county. However, rates could be higher depending on where in Alabama you live or work, as local governments can also collect income taxes ranging from 0% to 2%. Option 1: Calculate AL State Income Tax Manually; If you like to calcualte state tax withholdings manually, you can refer to the Alabama tax tables; and step by step guide there. Use this free tax return calculator to estimate how much you'll owe in federal taxes on your 2020 return, using your income, deductions and credits — in just a few steps. This balance is then multiplied by 35% to estimate the sales tax paid.For property taxes, we compared the median property taxes paid in each county. 3. The Alabama income tax calculator is designed to provide a salary example with salary deductions made in Alabama. Please change your search criteria and try again. Alabama has a flat corporate income tax rate of 6.500% of gross income. Alabama has the second lowest average effective property tax rate in the country, and its income tax rates range from just 2% to 5%, lower than most other states that have an income tax.